HMRC / HM Treasury have written to Maria Kitt today to thank us for our recent input into the 2015 R & D Consultation. It is good to see HMRC sweeping through a number of uplifts to R & D reliefs and general availability of the reliefs.
In a ‘letter’ to Maria Kitt, HM Policy advisors thank us for our input and confirm:
- Uplifted relief for SME’s to 230% from 01 04 2015
- Improved access to R & D through the HMRC assurance programme
- Work upon the definition of consumables to prevent inappropriate claims
- Ongoing consultation on the UK relief programme
This is what they said:
The Government would like to thank you for providing views on recent consultations about improving access for smaller companies to the R&D tax credits and on the treatment of consumable items where a company sells the products of its R&D activity as part of its normal business.
We have taken your views into account and are pleased to announce the following changes, alongside increasing the rate of the above the line credit from 10% to 11% and the rate of the small and medium enterprise (SME) scheme from 225% to 230% from 1 April 2015;
- the government has announced in the Budget that it will introduce voluntary advance assurances lasting 3 years for smaller businesses making a first claim from autumn 2015 and reduce the time taken to process a claim from 2016. There will be new standalone guidance aimed specifically at smaller companies, backed by a 2 year publicity strategy to raise awareness of R&D tax credits. HMRC will publish a document in the summer setting out a roadmap for further improvements to the scheme over the next 2 years.
- the legislation implementing the changes to the treatment of expenditure on consumable items has been revised to address concerns expressed in consultation. This will be by clarifying that the new restriction will not apply where the product of the R&D is transferred as waste, or where it is transferred but no consideration is received. We will continue to monitor how the legislation operates and will propose further changes if necessary.
Thank you again for responding to the consultation and helping informing decisions announced in the Budget. I would be grateful if you could pass this email on to any colleagues who you think may be interested.
Senior Policy Adviser
HMRC Corporation Tax, International and Stamps
100 Parliament Street, London SW1A 2BQ